Question: Besides defending the assumptions made when preparing a budget, the preparer should be able to defend the numbers in a budget. For example, if minimum

Besides defending the assumptions made when preparing a budget, the preparer should be able to defend the numbers in a budget. For example, if minimum wage is increasing significantly and the majority of the companies employees receive minimum wage, the company should adjust the budget to reflect that- they shouldn't just budget for an ordinary cost of living adjustment of 3%. In this example, the new law served as the basis for the increase in salaries. Provide examples of income or expense items and what you would base the increase or decrease upon.

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